After three months of solid job growth, London looks ready to continue its streak, two top Canadian economists predict.

The optimism about the July job numbers, which will be released by Statistics Canada Friday, is based on solid economic numbers from the U.S. this week, despite the week’s meltdown on world stock markets.

July was another good month for U.S. job growth, the economy grew by 4% in the fourth quarter and auto sales, consumer confidence and manufacturing activity are all on the upswing.

Since March, the London-area unemployment rate has fallen to 7.4% from 8.2% and is below the provincial average for the first time in four years. A long decline in the size of the labour force has also reversed.

Economists say they think London’s close ties to the American economy bode well for the July numbers.

“Most indicators are very solid. The U.S. economy is finding its stride and that could only be good news for Ontario,” BMO chief economist Douglas Porter said.

A BMO study found that London was more closely tied to the U.S. economy than any other area of North America.

Porter said over the past year Canadian manufacturing output has risen 3%.

“It’s not great, but it’s better and the sector is benefiting from stronger U.S. job numbers,” Porter said.

Strong markets have tumbled in the last two days, but it was partly due to fears the resurgent economy would push up interest rates.

New figures from the Royal Bank of Canada (RBC) indicate U.S. momentum is being picked up the Canadian manufacturers.

A monthly manufacturing index that measures production, new orders and employment was up in July, its best showing since last November.

“It’s a strong uptick, which bodes well for greater strength in the manufacturing sector in the third quarter,” said Paul Ferley, RBC assistant chief economist.

Ferley said the impressive 4% boost in the U.S. gross domestic product last quarter, and the recent slight decline in the value of the Canadian loonie, is all good news for local manufacturers who export.

“It bodes well for increasing demands for our exports . . . that will boost manufacturing and activity in London should benefit,” Ferley said.